Global sparkling coffee market size was valued at USD 621.6 million in 2023, expected to reach USD 1151.4 million in 2031, with a CAGR of 8.01% for the forecast period between 2024 and 2031. Sparkling coffee is a newer concept in the beverage industry catering to the evolving tastes and preferences of consumers seeking new refreshing and readily available coffee concepts. Sparkling coffee, characterized by its effervescence and fusion of carbonation with coffee, has witnessed significant traction in recent years. Global sparkling coffee market aligns with the changing consumer demand, especially in urban areas, for a unique and diverse range of beverage options. On the broader market dynamics, the beverage is preferred among younger consumers like Generation Z and millennials.

Global sparkling coffee market is driven by the convenience of ready-to-drink beverage solutions, unique taste and aggressive marketing and distribution strategies by brands and manufacturers. The market previously dominated by established brands has attracted new startups and business ventures to enter this market bringing in a variety of new tastes and flavours to the traditional coffee landscape. Sparkling coffee sits at the transitional phase where consumers are moving away from carbonated soft drinks (CSDs) and looking for healthier options. The rise of sparkling coffee as a beverage aligns with broader health and wellness trends, offering a potential avenue for market growth. As consumers continuously prioritize healthier alternatives, sparkling coffee, with its potential for lower-calorie formulations and other benefits, has positioned itself as an appealing option.

Diverse Flavour Options and Convenience Fuelling the Demand

Carbonated drinks like soft drinks and sodas dominated the beverage industry for a long time due to their convenience and availability in a variety of flavors catering to different taste buds, considering the regional taste and preferences. In response to flavors and considering the health benefits of sparkling coffee, brands, and manufacturers have launched different flavors for their RTD coffee in carbonated form. Due to the evolving tastes and the experimental nature of the young population, who also prefer coffee, brands continuously experiment with flavor profiles to cater to a wide range of consumer tastes. Variations such as mocha, vanilla, fruit-infused sparkling coffee or unique spice blends gain popularity. Global sparkling coffee market continued growth in the popularity and sales of ready-to-drink sparkling coffee products, is majorly due to consumers' busy lifestyles and the demand for convenient beverage options.

In November 2022, Dark City Foundry, a boutique cold drip coffee maker, released a sparkling coffee variety in two flavours. These beverages are likewise dairy-free, low in sugar, and have a mildly effervescent taste. They include a double shot of coffee flavoured with yuzu and caramel.

Declining Consumption of CSD’s Benefiting Sparkling Coffee Market

In the global market of the beverage industry, it can be noted that consumers across the regions are moving away from carbonated soft drinks and energy drinks due to growing health consciousness. Usage and consumption of CSD’s are associated with increased chances of health issues like obesity, tooth decay and diabetes. Due to these health issues, educated and young consumers are looking for alternate drinks in the form of sparkling coffee thus driving the global sparkling coffee market. Coffee consumption is increasing in younger demographics all over the globe because of its low-calorie formulation and natural ingredients to align with consumer wellness trends.

In 2023, it was estimated that soft drink consumption among teenagers in America dropped by 60% in the last 15 years. Americans have been abandoning sugary soft drinks in favor of healthier alternatives. People are turning away from high-priced, high-calorie beverages. Soda consumption has dropped to its lowest level since 2016, with many Americans opting for water, coffee and other healthier beverages instead of sugary, carbonated drinks.

E-commerce Expansion Aiding the Sparkling Coffee Market

Over the last decade, e-commerce has expanded significantly all over the globe across regions and countries. E-commerce distribution channel has aided various brands and manufacturers in the global sparkling coffee market to expand their reach and cater to a wider range of customers living in metropolitan areas and rural areas as well. E-commerce not only aids in generating sales of sparkling coffee but also helps in building an online presence. Apart from e-commerce channels, many brands have adopted direct-to-consumer (D2C) models as they allow sparkling coffee brands to reach a wider global audience without relying solely on traditional retail channels. E-commerce provides consumers with the convenience of shopping from the comfort of their homes or while working at their workplace and getting the beverage right at their doorstep. E-commerce and D2C models give brands more control over their messaging, customer interactions, offers, discounts, promotions and product offerings.

In December 2022, Wisconsin-based Siren Shrub Co. collaborated with award-winning Ruby Coffee Roasters to create a new coffee drink called Coffee Sparkling Shrub. The flavour is a blend of lemon juice and espresso, inspired by the Espresso Romano.

Marketing, Branding and Distribution Strategies Driving the Market

One reason and driver behind the growth of global sparkling coffee market is aggressive marketing and distribution strategies by brands. Manufacturers make sure that their products are available at as many locations as possible. Places include retail shops, supermarkets, cafes, restaurants and also on online platforms that make products accessible. The premiumization of coffee, with an emphasis on quality, unique flavours and premium and attractive packaging, have contributed to the growth of the sparkling coffee market. Consumers are willing to pay a premium for high-quality and sophisticated coffee experiences. Effective marketing and branding efforts by companies in the sparkling coffee market have played a crucial role in raising awareness and generating consumer interest. Creative campaigns and branding that highlight the distinct attributes of sparkling coffee contribute to global sparkling coffee market growth.

In May 2023, US-based Caribou Coffee, a premium coffeehouse and a Panera Brands subsidiary, introduced new beverages, Classic Espresso Tonic and a Cherry Peach Espresso Tonic. Both beverages use Fever-Tree Premium Tonic Water, which enhances the citrus overtones in Caribou's Cross Fox espresso to create a delightful, mildly carbonated, cocktail-like beverage experience.

Impact of COVID-19

Global sparkling coffee market was in the initial stages when the COVID-19 pandemic hit the global economy. COVID-19 pandemic had a significant impact on the global economy and its impact was felt across different industries including the global sparkling coffee market. Due to the COVID-19 pandemic control measures, like lockdown and movement restrictions, caused closures of commercial places like retail shops, grocery shops, restaurants, cafes and others which affected the sales and distribution channels of the global sparkling coffee market. Sparkling coffee is relatively costlier than other CSDs, in lower-income economies people restrict their spending on sparkling coffee consumption and use their money on necessities. However, once economies recovered, the market picked up pace again and the young generation found a new taste and inclination towards sparkling coffee due to its health benefits.

Report Scope 

“Sparkling Coffee Market Assessment, Opportunities and Forecast, 2017-2031”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of the global sparkling coffee market, industry dynamics and challenges. The report includes market size, segmental shares, growth trends, COVID-19 impact, opportunities and forecast between 2023 and 2030. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc. 

 

Report Attribute	Details
Base Year of the Analysis	2023
Historical Period	2017-2022
Forecast Period	2024 and 2031
Projected Growth Rate	CAGR of 8.01% between 2024 and 2031
Revenue Forecast in 2031	USD 1151.4 million
Units	Revenue in USD million
Segments Covered	Product Type, Flavor Type, Packaging Type, Distribution Channel
Regions Covered	North America, Europe, South America, Asia-Pacific, Middle East and Africa
Key Companies Profiled	Keepers Co., Matchless Coffee Soda Co., Stumptown Coffee Corp., Upruit, LLC, Edelweiss Foods GmbH (ELEMENZA COFFEE ROASTERS), Paulig Ltd, Siren Shrub Co., Hector Beverages Private Limited, POPPED CULTURE, INC, RITA Food and Drink Co.,Ltd
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfil your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

 In this report, global sparkling coffee market has been segmented into the following categories:  

·         By Product Type

o   Caffeinated

o   Decaffeinated

·         By Flavor Type

o   Flavored

§  Lemon

§  Raspberry

§  Ginger

§  Others

o   Unflavored

·         By Packaging Type

o   Cans

o   Bottles

§  Plastic

§  Glass

§  Others

o   Others

·         By Distribution Channel

o   Online

o   Offline

§  Hypermarkets/Supermarkets

§  Wholesalers/Distributors

§  Specialty Stores

§  Others

·         By Region

o   North America

o   South America

o   Europe

o   Asia-pacific

o   Middle East & Africa

Key Players Landscape and Outlook

Global sparkling coffee market outlook is positive and competitive and dominated by some key market players but the growing size of the market has space for various regional and domestic brands. The global Sparkling coffee market is shaped by various factors like growing demand and awareness for the product and increased health consciousness across regions and sectors, coupled with the convenience of RTD beverages. The global sparkling coffee market is still in the development and initial stage shaped by evolving consumer tastes and preferences. In the forecast period, both developing markets, like Asia, Middle East, and the developed markets of North America and Europe will drive market growth. As the market continues to expand, many soft drink brands are looking forward to launching sparkling coffee of their own and new startups are expected to enter the market. In May 2023, Matchless Coffee Soda purchased the domain QuayCoffee.com as part of their approach to become a prominent coffee brand, which they will include in matchlesscoffeesoda.com. Quay Coffee, which was launched on June 22, 2012, now operates three coffee shops in Kansas City.

Key Players Operating in Global Sparkling Coffee Market are:

·         Keepers Co.

·         Matchless Coffee Soda Co.

·         Stumptown Coffee Corp.

·         Upruit, LLC

·         Edelweiss Foods GmbH (ELEMENZA COFFEE ROASTERS)

·         Paulig Ltd

·         Siren Shrub Co.

·         Hector Beverages Private Limited

·         POPPED CULTURE, INC

·         RITA Food and Drink Co.,Ltd

Markets and Data’s reports answer the following questions:

·         What is the current and future market size of the product/service in question globally or specific to different countries?

·         How are the markets divided into different product/service segments and the market size and growth of each segment? 

·         What is the market potential of different product segments and their investment case?

·         How are the markets predicted to develop in the future and what factors will drive or inhibit growth?

·         What is the business environment and regulatory landscape specific to the product/service?

If you can't find what you're searching for or have any custom requirements for global sparkling coffee market, you may approach our team at info@marketsandata.com.